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7-year note auction of 29 January 2019 (new issue)

The 7-year note sold $32 billion at a high yield of 2.625% on , with a bid-to-cover ratio of 2.54.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.625%

Median yield 2.580%

Bid-to-cover

2.54

▲ +0.08 since 27 Dec

Sold

$32.00 billion

$32 billion offered

Indirect bidders

58.3%

Of competitive bids accepted

High yield at the last 36 7-year note auctions

High yield at each 7-year note auction, %

High yield at the last 36 7-year note auctions36 auctions from 26 May 2016 to 29 January 2019; the latest at 2.625%.1.0%1.5%2.0%2.5%3.0%3.5%2016201720182019This auction, 2.625%High yield at the last 36 7-year note auctions36 auctions from 26 May 2016 to 29 January 2019; the latest at 2.625%.1.5%2.0%2.5%3.0%3.5%2017201820192.625%

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

The 36 auctions as a table
High yield and bid-to-cover of the last 36 7-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
2.6252.54
2.6802.46
2.9742.55
3.0742.39
3.0342.45
2.8442.65
2.9302.49
2.8092.53
2.9302.62
2.9522.56
2.7202.34
2.8392.49
2.5652.73
2.3702.55
2.2452.36
2.2302.36
2.0662.46
2.2802.39
2.1302.70
1.9412.46
2.1262.54
2.0562.46
2.0602.54
2.0842.73
1.2802.85
2.2152.56
2.1972.49
2.3352.45
2.2842.54
2.2152.68
1.6532.49
1.3892.47
1.4232.38
1.3402.51
1.4972.56
1.6522.57

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.542.515 of 127 of 12
High yield2.6252.88711 of 121 of 12
Indirect bidders' share58.363.410 of 122 of 12
Direct bidders' share24.912.81 of 1211 of 12
Primary dealers' share16.821.910 of 122 of 12
High minus median, basis points4.54.46 of 126 of 12

The table scrolls sideways; the first column stays in place.

Who bought the 7-year note?

Indirect bidders took 58.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 December 2018

Indirect bidders took 58.3% of the competitive bids acceptedIndirect bidders 58.3%, Direct bidders 24.9%, Primary dealers 16.8%Indirect bidders58.3%67.4%Direct bidders24.9%14.6%Primary dealers16.8%18.0%Indirect bidders took 58.3% of the competitive bids acceptedIndirect bidders 58.3%, Direct bidders 24.9%, Primary dealers 16.8%Indirect bidders58.3%67.4%Direct bidders24.9%14.6%Primary dealers16.8%18.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders58.367.4
Direct bidders24.914.6
Primary dealers16.818.0

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as7-Year, new issue
Offering amount$32,000,000,000
Bids received$81,161,943,000
Sold$32,000,106,200
Competitive bids accepted$31,985,843,200
Non-competitive bids accepted$14,263,000
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.625
Median rate, %2.580
Low rate, %2.500
Interest rate (coupon), %2.625
Bids at the high rate filled, %1.31
Bid-to-cover ratio2.54
Indirect bidders accepted$18,636,886,700
Direct bidders accepted$7,966,555,000
Primary dealers accepted$5,382,401,500
Indirect bidders' share, % (ours)58.3
Direct bidders' share, % (ours)24.9
Primary dealers' share, % (ours)16.8
High minus median, basis points (ours)4.5
Treasury par yield curve, 7-year point, same day, %2.61
High yield minus that point, basis points (ours)1.5

Treasury's own files: announcement (PDF) · results (PDF)

How to read this result

The high yield is the highest rate Treasury accepted; every winning bidder gets it. The bid-to-cover ratio is bids received divided by the amount sold. Shares are of competitive bids accepted. High minus median shows how far the accepted cut-off sat above the middle accepted bid; it is not the market's auction tail, which needs a when-issued price that is not public.

The par yield curve comparison sets the high yield against Treasury's own par yield curve on the auction day, at the point nearest this security's maturity (7-year). Treasury fixes that curve from market quotes in the late afternoon, after the auction closed, so the gap mixes the auction's pricing with the afternoon's market move. It is not the auction tail either.

What this number cannot tell you

  • Why it sold where it did. Results show what was bid and accepted, not the reasons behind any bid.
  • The auction tail as markets quote it. That compares the high yield with the when-issued yield just before bids closed, a market price that is not public; we show high minus median instead, a different measure.
  • Who the bidders are. Indirect bidders include foreign and international accounts bidding through the New York Fed and investors bidding through dealers; Treasury does not publish names.
  • Demand on another day. A bid-to-cover ratio counts bids at one auction against the amount offered, and the amount offered changes from auction to auction.

The longer windows

Each measure against earlier 7-year note auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.54Last 24 auctions9 of 2413 of 242.51
Bid-to-cover ratio2.54All 124 since 26 February 200975 of 12445 of 1242.60
High yield2.625Last 24 auctions11 of 2413 of 242.468
High yield2.625Since 26 February 200931 of 12493 of 1242.106
High yield2.625All 173 since 6 February 198080 of 17393 of 1732.384
Indirect bidders' share58.3Last 24 auctions22 of 242 of 2464.0
Indirect bidders' share58.3All 124 since 26 February 200945 of 12479 of 12450.9
Direct bidders' share24.9Last 24 auctions1 of 2423 of 2412.8
Direct bidders' share24.9All 124 since 26 February 20092 of 124122 of 12412.8
Primary dealers' share16.8Last 24 auctions19 of 245 of 2422.5
Primary dealers' share16.8All 124 since 26 February 2009118 of 1246 of 12436.2
High minus median, basis points4.5Last 24 auctions13 of 2411 of 244.8
High minus median, basis points4.5Since 26 February 200954 of 12466 of 1244.4
High minus median, basis points4.5All 173 since 6 February 198059 of 173110 of 1734.0

The table scrolls sideways; the first column stays in place.

Sources

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

Shares of competitive bids, grades against earlier auctions and the high-minus-median spread are computed by 500metrics from Treasury's published fields; how.

Source: U.S. Treasury, Daily Treasury par yield curve rates. Observed .

How to cite this

U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 29 January 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190129_3.pdf. Compiled by 500metrics, "7-year note auction of 29 January 2019 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2019-01-29.

Sources and licence

Sources and licence

  • U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data (source). Licence: Public domain, a work of the US federal government
  • U.S. Treasury, daily par yield curve rates (source). Licence: Public domain, a work of the US federal government

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